but click here for a $50 shareware program that will turn scanned letters into Truetype fonts. It may be a lot more work than you expect, but excellent results are possible with patience. Font Creator is much cheaper than Fontographer ($350) or Fontlab ($550), but has all the tools you need to make Truetype fonts.
Outline need to be scanned and saved as bitmaps. Font Creator will import them, and trace them into vector images that need minor adjustements. Then you need to assign character mapping, name the font and set character widths etc, to make the letters join correctly.
click here for an online tutorial.